Difference between Marginal Costing and Absotption Costing

 MARGINAL COSTING-

1.It cares increasing or decreasing one unit.

2.It cares only variable cost.

3.It cares only variable overheads.

4.It is decision making techniques.

5.It is  beneficial for small scale and middle scale company.

6.It links per unit transactions after increasing and decreasing unit.

7.It does not influence opening and closing stock.

8.Profit is measured by profit volume ratio.

ABSORPTION COSTING-

1.It belongs to more than one unit.

2.It cares both  costs variable and fixed

3.It cares production and distribution overheads.

4.It is cost control techniques.

5.It is benificial  for large scale company and multinational.

6.It links net profit after increasing or decreasing of unit.

7.It effects opening and closing stock.

8.Profit is not   measured by unit wise.